Statutory Liquidity Ratio Subject :Economy Section: Monetary Policy Statutory Liquidity Ratio popularly called SLR is the minimum percentage of deposits that the commercial bank maintains through gold, cash and other securities. However, these deposits are maintained by the banks themselves and not with the RBI or Reserve Bank of India. Section 24 and […]

    Statutory Liquidity Ratio Subject: Economy Context: Banks’ excess holdings of SLR securities moderate to 8.8% from 10.4 per cent at end-March 2022. Details: Reduction in the excess holdings of statutory liquidity ratio (SLR) securities of Scheduled Commercial Banks (SCBs) indicates credit rise. Current SLR in India – 18.00% (minimum required) Excess SLR holdings […]

    Statutory Liquidity Ratio Subject: Economy Section: Monetary Policy Why in the news? the growing disconnect, and divergence between benchmark yields and bank lending rates, with banks entering a new territory where lending rates are now effectively lower than yields, thereby taking the sheen off risky lending. Recent hike in government bonds: Inflation New […]